Research On Brand Extension Strategy

The competition between enterprises becomes more and more vehement, as a result, brand which can be made use of as an effective ways of competition has plays an important role. Under this circumstance, this dissertation analyzes the theoretical framework on brand extension behavior, carries out empirical analysis as well as case study, and put forward some beneficial suggestions on enterprises'brand extension.Making use of theoretical analysis and empirical study, and based on the conclusion from management, economics, psychology and statistics, this dissertation discusses the whole range of brand extension which begins with the definition of brand extension. Such contents as the definition of extension product, the transfer of customer brand loyalty, the correlation between extension product and original product, and behavior analysis of related enterprises show high degree of creativity and exploitation.The main conclusion as well as creativity embodies in the following areas: Firstly, the generalization of basic concept such as brand extension and other related concepts. This dissertation explicitly analyzes the definition of brand extension, the criteria by which we study new product in brand extension and some other basic hypothesis. The study on new product in brand extension differs from the function-based criterion in traditional marketing theory.Secondly, the building up of element system which has effect on brand extension. This dissertation put forward the three-dimensional system which contains customers, competitors and enterprise. Making use of the research system stated above, this dissertation studies the transforming model of customer brand loyalty, the analyzing model of competitor behavior and the model of correlation between extension product and original ones. Besides, this dissertation discusses the function mechanism of all those elements on brand extension effect.Thirdly, the construction of market competition model of brand extension product. Based on the analysis of element system, this dissertation put forward the static and dynamic model on extension product's market competition structure,discusses the corresponding tactics in extension product market, the tactics of enterprise which carries out brand extension and the extension product's market status taking enterprise's brand extension into consideration.Finally but not the least, the building up of brand extension boundary model. Based on the function-performance model, this dissertation puts forward the comprehensive brand extension boundary model which is built up upon two aspects: the soft restriction of correlation between extension product and original ones and the rigid restriction on customer identification. This comprehensive model solve the problem that the function-performance model lacks maneuverability.